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tv   [untitled]    April 16, 2012 5:00pm-5:30pm EDT

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in the defense business and the commercial business and some of our collective interests. and that's where i'd like to spend my time today. now, on a personal note, the commercial business is very familiar to me. i've had the opportunity to work now for boeing for about 26 years. i spent a good amount of that time working on the commercial tide of our business. i worked in the 2000 time frame to head up engineering and program management for boeing's air traffic management modernization work. that's the place i met many of you. and it's so good to reconnect with many of you today. and that air traffic management area is one area that i'll delve into in a little more detail. but i think it's important to recognize that i not only have an appreciation for those challenges, but i think we see a
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lot of common challenges in a lot of common interest areas between defense and commercial. in fact, many of the technologies that made air travel possible, things like radar and gps had the origination in defense programs and transitioned to commercial. what do we need to do to make that a reality. the seconds topic around cyber security. and the threats to the network that we rely on and collectively things we can rely on there. thirdly, how do we remove biofuels from today's demonstrations to being fully implemented and used in a manner that is productive for industry and our customers?
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perhaps we don't recognize that connection and we have work to do as a country on that front. meanwhile, competing nations around the globe understand it. they understand that those matters are connected. they're not sitting on the sidelines and they're certainly not trying to fight over turf. instead, they are investing to win with the idea that their future depends on it. if we want america to win jobs, we have work to do. this is a serious economic matter. so i'm here today to suggest in way that's not only can we work together but we can speak with one voice and that we can partner between industry and government. and when we look at defense or commercial we face similar
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challenges. intensifying competition, economic uncertainty, environmental constraints, technological innovation, rise of emerging markets, government regulations, and talent mobility. these are some common challenges that we face. we need a strategy as a country to deal with these. as we all do in business today, we have a strategy. i can tell you from boeing defense space and security standpoint we understand we're in a challenging defense environment. it's something that we anticipated, something where we've been shaping and implementing our strategy over the years. and while we have challenges ahead, we understand our game plan. i'm concerned that when we look at america's game plan for aviation, that strategy doesn't really exist. and i'm not talking necessarily about a formal industrial policy but i am talking about an industrial strategy that's thoughtful and competitive. now, the world is changing and
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we need to adapt. otherwise i feel that america will wake up -- let's take a few minutes to look at those fours areas i mentioned. first of all, nextgen atm. in 2000 i this a privilege of having a leadership role in boeing's air traffic management effort and trying to work with the community to bring solutions forward and i can recall the summer of 2000. many of you do and we remember the environment in the commercial flight networks. we remember the capacity pressure in the system, some questions about the reliability of flight times and the reliability of the system overall and then 9/11 happened. and overnight we went from an emphasis on capacity and efficiency to an emphasis on security. and i will say that over the last decade certainly some improvements and some enhancements have been made in the security of the system have been made and those are needed and still needed. but we haven't made as much progress on capacity and efficiency as we need to make. this is not so much about the technology as it is about the political alignment and the will to implement. i they we all understand there are some very significant benefits to nextgen atm. it will make air travel faster and greener. it would reduce delays by at least 21% and greenhouse gasses
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by up to 12% by 2025. i can tell you boeing spends billions of dollars to introduce new product lines like the 787 and the investment that's been made in the 787 to drive efficiency and reduce emissions was significant and that resulted in about a 20% improvement on that front. but with a similar investment in nextgen, the u.s. can conceivably make all airplanes up to 12% more efficient, regardless of the individual platform. think about the implications that has to our country and to
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our leadership in aviation. now what's needed to achieve that? i would say fortunately after 23 extensions, the faa was finally reauthorized and i know many of you worked hard to make that happen. obviously that's a positive thing but this battle that russ referenced on funding and stability and the process i think is important. we need stake holders to aggressively pursue alternative financing rather than traditional appropriations. the administration we believe must step forward with an implementation program to make the business case for investment. that's been a hurdle in this area. the government needs to encourage technologies that fit with nextgen and offer significant, immediate operational efficiencies. these cost government and taxpayers next to nothing other than the political will and a focused effort to implement them expeditiously. faa and other air traffic providers must be open to new
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ways to relieve geographic bottlements. this is about finding new and creative procedures that take advantage of technology and nextgen thinking. and governments around the world need to start providing incentives airport by airport, region by region, for aircraft operators to be nextgen equipped. this could be the snowball effect around the world that could lead to full implementation. this is too important not to accomplish this task. on a somewhat related note is the introduction of unmanned aircraft into today's unmanned system. this is a technology system we're all working on, another intersection between defense and commercial. this is something that nextgen technology will allow and another area that will allow america to stay on the leading edge of aviation. i'd like to move now to the second topic, cyber security. collaboration is also required.
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we are more dependent on networks to control everything from energy to finance. damage to have serious consequences for national security and our economy. threats are constantly changing and a complacent network can quickly become a compromised network. as a country we need to invest in protecting our critical infrastructure. i could argue the air traffic system is one. most critical things in that critical infrastructure. imagine if somebody hacked into the system or airplanes were directed to go somewhere they didn't want to go. imagine the impact on lives and the economic impact if all or portions of the air traffic system were shut down for those kind of cyber security reasons. we simply cannot afford that. pilots and controllers need to know the messages they're receiving, the information on their displays are authentic and accurate.
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coordinated efforts can help ensure the integrity of the information and the security of flight plans. and when it comes to cyber security, no one of us has all the answers, but we each have a role to play. i believe industry can bring innovation, speed and technical expertise. at boeing certainly we are investing in that area and i know many of my industrial counterparts here in the room are also investing in cyber security. we recently opened up a cyber engagement center here in the national capital region as an area where customers can come in and test out new cyber security strategies. because cyber threats are continuously evolving, this is an area that demands government-industry alignment and partnership. this i believe is a very, very important matter to our national security and economy and one that this group should take on with full effect. the third area i'd like to touch on briefly is biofuels. commercial aviation has set a goal to reduce its carbon footprint of commercial aviation by 350% in 2050.
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certainly a tough goal by a very good goal. on the defense side, the pentagon is working to derive 25% of its fuel by renewable resources by 2025. the navy has set a goal to get 50% of renewable fuel by 2020. biofuels can help us reach those goals. when the defense side makes big commitments like the navy and defense department has made, it can be a down payment on progress on the civilian side. it can help us drive infrastructure and capacity that we all need. to be successful, biofuels as we node need to be -- require no modification to the line they are fueling. boeing has been involved in biofuel testing. we've been doing that since 2008. last summer we flew a new 747-8 to the paris air show on a biofuel blend. in addition we see the military moving forward with biofuel implementation as well. the secretary of the navy and agriculture announced the
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largest purchase of biofuel in government history, nearly a half a million gallons of advanced dropped in biofuel. in 2010 the navy flew a super hornet, f/18 super hornet on a bioblend. we now affectionately call that airplane the green hornet. it is allowing us to drive implementation of biofuels the air force haas certified the c-17 for unlimited use on biofuels and it has tested and certified biofuel as a 50% blend with regular jet fuel on the f-15, the a-10 and the f-22. just last year we flew the first apache with our royal netherlands air force customer, the first apache on biofuel,
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making it the first roto craft to use that system. i would argue that by defense and commercial sectors working together, we can work more quickly. >> now perhaps to the most important of the four categories. consider according to aia, america's aerospace and defense
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industrial space is at its smallest since world war ii. not a well-known fact. in my company about 28% of our engineers are eligible to retire today. looking ahead there aren't enough young people pursuing engineering and technical degrees. only 5% of american bachelor for example, at our long beach plant with c-17 engineers, we have revectored some of them to support commercial development activities on the new 737 max. not all skills are interchangeable, but certainly there are opportunities for making those redeployments. as the space shuttle program has come to an end, perhaps a
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premature end, we have moved some of our space engineers to work on commercial aircraft. in fact, they've had a pivotal role in standing up our new charleston 787 production factory. now, just as we're able to move people around to different programs, that's not the only thing that we can do to retain talent. we need to be thoughtful about how do we build the pipeline for the future. one of the ways we're doing that is by tapping into a rich source of talent and leadership in our military veterans who are returning to civilian life. currently at boeing about 16% of our employees are veterans. that high percentage doesn't just happen. we actively recruit these experienced veterans because of the leadership skills that they bring. last year we hired more than 1,800 veterans, and again i know many in industry are moving forward with similar initiatives. these are great americans who
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have done great things for our country and they deserve to be engaged in our industry. this is another way that we can build the talent for the future. but beyond that, we need to build the talent pipeline. when we design a new airplane, we think about the entire life cycle of that product line. when we think about people, skills and the talent pipeline, we need to think about that same life cycle. let me give you just one small example here of what that life cycle or lack thereof is producing today. each year 4 million children enter preschool. 25% will complete algebra. 9% will declare a stem major, only 4.5% will graduate with a stem degree and only 1.7% will graduate with an engineering degree. if you do the math there really quirk it's 60,000 to 70,000 engineers, which is woefully short of what our industry alone needs, let alone all engineering categories. we simply have an insufficient talent pipeline. and without a life cycle approach that not only looks at investing in the front end of that pipeline but engaging
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student, getting them into success african-american, stem-related engineering career and helping them achieve rotations early so they can expand have and successful life span careers, we will not be success. so it's important we are all here participating in this process. let me give you one data point i think you'll find enjoyable. today we find if you survey young people, it's important to know that 8 4% of american kids in the 11 to 13 age range would rather clean their rooms, eat their vegetables or go to the dentist than do their math homework. now having a couple of youngsters of my own, i can vouch for that data. something to consider. now, one way we engage kids and get them interested is in programs like first robotics. i know many of you are involved in that. this is just one example of a program that's a hands-on, technology-driven program that gets kids interested in their ability to become scientists, engineers and be technology driven. and it's opened up career
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options for kids who may have thought technology was not an option for them. i would suggest there are many other programs like this and we can all invest and have an impact on the pipeline. so if closing, whether it's air traffic management, cyber security, biofuels, industrial base in the talent pipeline, these are big challenges. together we can solve these challenges. our country will only move ahead if we band together in these areas and together we can reap the economic and security benefits that go with these investments. have i no doubt we can solve the technical challenges associated with these items. i think more importantly it's the human challenge of realizing we're all in this together and that's the hardest part to solve, to bring us all together to move in a political and financial framework that allows us to be successful.
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we must do it for the sake of our country, for our security and for our economy. and i believe we can. now, just to wrap up and then i'll be happy to take any questions, i want to tell you just one final story and last year i had the privilege of bringing my children to a space shuttle launch and i don't know how many of you have been to a space shuttle launch. a few hands out there. if you've been there before, my favorite spot to watch it from is an area called banana creek, which is across the water from the pad as close as you can get. and at this point my son, who is
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9 years old, and my daughter was 6 and i had the privilege of watching what was then the last night launch of shuttle discovery. and the timing was just right that the setting sun was still casting a glint on the space station as it came across the sky and then just a few minutes after the space station departed our view, the shuttle lifted off to rendezvous. and we stood there watching the shuttle rise up through the night sky. for those of you who have been to a night shuttle launch, it is amazing, literally lights up the sky. we watched the shuttle go up, felt the rumble coming across the water and as i was watching it, i felt this tug on my sleeve and it was my son looking up at me, luke and said "dad, i think i want to be an astronaut." that was a great moment, a very memorable moment, one, because of the impressiveness of the shuttle and the u.s. space program and all of the things that have come out of that
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program. it also made me a little bit reflective understanding the space shuttle program was coming to an end without a clear path forward on what next on human space exploration, but perhaps most importantly it reminded me of the inspirational nature of what we all do. nothing is more inspiring in the world than what we do in aviation. and it's a way for us to engage that future talent pipeline. and i think we need that same inspired mindset if we're to take on some of the challenges that i talked about earlier. and if we're going to retain america's leadership in aviation as we should, we need that same inspired mindset to have that commitment and that investment as a country. and i think that's fundamentally important to our future. it's an area that we all have a combined interest in and it's one that we have a collective responsibility for and i think that responsibility starts with each one of us. so with that, thank you and i'm
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happy to take any questions you might have. [ applause ] all right. any questions out there? we have time for a couple? right there. >> yes. in terms of maintaining u.s. leadership in the aviation field, how concerned should we be about the many u.s. companies that due to pressure from the chinese government have had to enter into joint ventures with chinese companies, state-owned enterprises, including sharing their technology and intellectual property? and what as a practical matter do you think the united states
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could be doing about that? >> that's a very good question and frankly a balanced approach is required here. you mentioned intellectual property. in the aviation industry as in many other high-tech industries, our capacity to succeed is built on our intellectual property and retaining that as an advantage. and so agreements that are made and joint ventures that are struck need to be done in a mindful way. and we also know today that in the cyber security realm that in some cases intellectual property is being threatened in that venue. so i think we need to be reflective of that and consider that. on the other hand, it's important to recognize that our
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aviation industry is a global industry. i can tell you our boeing supply chain is a global supply chain, as is the case with many of our industry counterparts. so we need to be able to compete globally. that includes partnering in china. that includes our ability to bring the best capabilities to our customers because that's what they demand. so striking agreements, building global partnerships is part of the success criteria, i believe. and in some cases that gets interpreted as building jobs outside of the united states. i would argue that those global partnerships are good for jobs everywhere and they're good for jobs in the united states. so we need to drive that, we need to be leaders on building global partnerships but it needs to be done in a mindful way for the reasons you mentioned. one in the back there. >> since we're facing an engineering shortage, are you prepared to import engineers, say, from asia to help meet the engineering deficiencies at boeing? >> yes, we are. as you know, many of our u.s. universities are graduating engineering students from other countries. as part of our global partnership networks, we need to
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access and build talent around the world. and companies like boeing, our talent is not only in the u.s. we do have major operations around the globe and in many cases engineers from other countries that support those operations. so i think that's important for the future. but, again, let's not interpret that as a win-lose situation. we build the right kind of partnerships and build the right works and right talent pipeline, we're going to build more work and u.s. in the u.s. while we're also building talent around the globe. that is very doable, as long as we set our mind to it. one more question. another one in the back there. >> there's one right down there. >> right here. okay. >> you mentioned the importance of biofuels and the commitment of that.
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we have this concern that now a number of strong defenders of defense readiness up on the hill don't believe in the aviation biofuel story. i won't name names right now but you probably know them, too. what can we do to turn that around and reconvince them that it's important for u.s. energy security, military security and certainly for the environment and other issues? >> certainly this is a coalition building process. i would offer that while there are still some opponents on the hill, there are also some very vocal and strong supporters. i believe the supporters are growing over time and the detractors are shrinking overtime. i need we need to succeed by example, by showing that it's doable, we can do it in a drop-in manner, it's economically feasible that, if we can build the distribution channels we know we need, this
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is good for all of us, good economically, good for technology and good from a green standpoint. it's like the four areas that i talked about. we can't be successful on any of these four areas without building the broad industrial government partnerships that are required to make it a reality. and i think biofuels is one of those examples. i do think the vector is moving in the right direction. we as a collective community need to continue to push forward with force. thank you. all right. with that i'll wrap up. thank you very much. it's been nearly ten years since the release of robert caro's "the years of lyndon
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johnson." here he is on q&a in 2008 with an update on how volume four was taking shape. >> this is really a book not just about lyndon johnson but about robert kennedy and jack kennedy and the interplay of their personalities, particularly robert, i guess. and it's a very complicated story. i don't think people know of two very complicated people. and robert kennedy and lyndon johnson. and i had to really go into that and try explain it. it's part of the story all the way through the end of johnson's presidency. that's done and i suppose chronologically at the moment johnson is passing the 1965 voting rights act. and that's sort of in one way where i'm up to now. >> watch of the rest of this interview and other appearances by robert caro online at the c-span video rye braer and watch
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for our upcoming q&a interview with robert caro on sunday, may 6th. now more from the annual aviation industry summit with delta airlines ceo richard anderson. he discussed the future of the aviation industry, competitiveness and consolidation within the airlines and offered options on how the industry could create more jobs in the future. this is half an hour. >> thank you, carol. it's my great pleasure to introduce richard anderson who in addition to being the chief executive officer of delta airlines is also my boss as chairman of the board of airlines for america.
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over the 23 years that richard has been in the airline industry, he's earned the reputation as a results-driven leader, not easily intimidated and willing to take on big opportunities as well as tough challenges that impact his company or the airline industry as a whole. opportunities, like the delta-northwest airlines merger in 2010, which created the platform for the management under richard's leadership to build an exponentially better business to the benefit of its employees, customers and communities that it serves. at the time of the merger, the

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